Here's why billionaires are parking their cash in gold

Unlike regular investors, billionaire money managers like Ray
Dalio and Stan Druckenmiller are professional investors. They
have entire institutional teams at their disposal, dive deep into
the nuances and complexities of the market, and spend every
waking moment of their lives thinking about how to get more from
their investments.

They want to make money – but they also want to execute on
strategies that will protect their wealth and build robust
portfolios that can withstand any type of macro event.

TURNING TO GOLD

In recent months, some of these elite investors have turned to
precious metals like gold as a part of their overall investment
strategies.

In the following infographic from Sprott
Physical Bullion Trusts, we explain why these investors are
adding precious metals to their portfolios, the underlying
tactics, and the best quotes each investor has on assessing
today’s market.

Why are these billionaires buying precious metals?

Their cited reasons can basically be summed up with six
categories: wealth preservation, store of value, inflation hedge,
portfolio diversification, future upside, and investment
fundamentals.

WHAT BILLIONAIRE INVESTORS ARE DOING

1. Lord Jacob Rothschild
In late summer 2016, Rothschild announced changes to the RIT Partners
portfolio because he was worried about very low interest rates,
negative yields, and quantitative easing, saying they are part of
the “greatest monetary experiment in monetary policy in the
history of the world”.

His solution? Buy gold to help preserve wealth, and as a store of
value for the future.

2. David Einhorn
Einhorn has a similar assessment. He believes that monetary
policy is becoming increasingly adventurous, and that this –
along with the policies of the Trump administration – will
eventually lead to large amounts of inflation.

3. Ray Dalio
Ray Dalio is the founder of the world’s top hedge fund,
Bridgewater Associates, but he’s also no stranger to gold.

More recently, in 2016, Dalio is quoted as telling investors to own a well-diversified
portfolio that is 5-10% gold. "If you don’t own gold, you know
neither history nor economics."

4. Stanley Druckenmiller
Druckenmiller, some people argue, is the best money manager of
all time.

Lately, he’s placed his bets on gold as well, but for different
reasons than the above managers. Druckenmiller has always placed
big trades with lots of conviction, and in February 2017 he put his money in gold because
“no country wants its currency to strengthen."